Yes. Medicare Part B covers home oxygen equipment, including oxygen concentrators, as durable medical equipment (DME) when your doctor documents a health condition that requires supplemental oxygen and a blood oxygen test confirms your levels fall below Medicare’s qualifying range. Coverage works differently from most equipment, though. Medicare never buys oxygen equipment for you. Instead, you rent it from a Medicare-enrolled supplier, and after you meet the Part B deductible ($283 in 2026) you pay 20% of the Medicare-approved monthly rental amount for up to 36 months.
That rental model is the source of most confusion about oxygen coverage: why you never own the equipment, what happens after three years of payments, and why the lightweight portable concentrators advertised on television are often sold for cash instead of billed to Medicare. Here is how coverage works from the qualifying test to the five-year mark.
How Medicare Covers Oxygen
Most covered equipment, like a walker or a hospital bed, is either purchased or rented until you own it. Oxygen is different. Medicare pays your supplier a single monthly rental fee for 36 months, and that fee bundles everything: the equipment itself, refills of oxygen contents if you use gas or liquid tanks, tubing and related supplies, and any maintenance or repairs needed to keep the equipment working. You pay 20% of that monthly fee, and the supplier owns the equipment the entire time.
Because the fee is all-inclusive, you should not see separate charges for tubing, cannulas, or routine servicing during the rental period. If a supplier tries to bill you separately for those items in the first 36 months, question the charge.
Who Qualifies for Medicare Oxygen Coverage?
Part B covers home oxygen when all the following are true.
- Your doctor documents a condition that impairs your breathing or oxygen delivery, such as COPD, another chronic lung disease, or a heart condition, and expects oxygen therapy to help.
- A blood oxygen test, either an arterial blood gas or a pulse oximetry reading, shows your levels fall below Medicare’s qualifying range. The test can be taken at rest, during activity, or during sleep, depending on when your levels drop.
- Your doctor writes the order after an in-person or qualifying telehealth visit, and the prescribing provider is enrolled in Medicare.
- You rent the equipment from a Medicare-enrolled DME supplier.
Medicare also covers oxygen for a small set of conditions that are not tied to blood oxygen levels, such as cluster headaches. And if your oxygen problem shows up mainly during sleep, your doctor may evaluate you for sleep apnea, which Medicare covers under its own rules. See our guide to CPAP machines for how that coverage works.
What You Pay for Oxygen Equipment with Medicare
Once you qualify, the math follows the standard Part B pattern, repeated monthly. You pay any remaining Part B deductible ($283 in 2026), then 20% of the Medicare-approved monthly rental amount, and Medicare pays 80%. Because the coinsurance repeats every month for up to 36 months, oxygen is one of the longest-running out-of-pocket commitments in durable medical equipment.
If you have a Medicare Supplement (Medigap) plan, it generally pays 20% coinsurance for you each month. If you are on a Medicare Advantage plan, your plan must cover oxygen at least as well as Original Medicare, but your copay, supplier network, and prior authorization rules are set by the plan. Check your plan documents or call the number on your card before starting a rental. As with all DME, your costs are lowest with suppliers who accept assignment, meaning they agree to the Medicare-approved amount as full payment.
What Happens After the 36-Month Rental Cap?
After 36 monthly payments, the rental fees stop, but your coverage does not. The supplier still owns the equipment and must continue providing it, keeping it in working order, and supplying what you need for as long as you medically need oxygen, up to the equipment’s five-year reasonable useful lifetime. During those additional 24 months you pay no rental fee. Two smaller costs can continue: if you use gas or liquid tanks, you keep paying 20% coinsurance for monthly content refills, and if you use a concentrator, the supplier can bill a coinsurance for an in-home maintenance visit no more than once every six months, and only when a visit takes place.
At the five-year mark, the supplier’s obligation ends. If you still need oxygen, you choose new equipment from any Medicare-enrolled supplier, and a new 36-month rental cycle begins. There is no limit on the number of cycles.
Why Portable Oxygen Concentrators Are Handled Differently
Portable oxygen concentrators (POCs) are covered under the same rental rules as any other oxygen setup, and they have their own billing code. In practice, though, they are harder to get through Medicare. Medicare pays suppliers roughly the same monthly rental amount no matter which equipment they provide, and a portable concentrator costs the supplier far more than a stationary concentrator with portable tanks. Many suppliers respond by filling oxygen orders with the stationary setup and not offering POCs at all.
If a portable concentrator matters to you, for travel, work, or an active routine, take two steps. First, ask your doctor to document your need for portability, not just your need for oxygen. Second, call suppliers and ask directly whether they provide portable oxygen concentrators through Medicare, because many will say no and some that say yes keep waiting lists.
This supplier economics problem is why brand-name units like Inogen are so heavily advertised for direct purchase. An Inogen or similar unit can be covered when a Medicare-enrolled supplier provides it as a rental, but buying one outright from the manufacturer or a retailer is not reimbursed, because Medicare rents oxygen equipment rather than purchasing it. If you want a specific brand through Medicare, confirm in writing that the supplier will bill Medicare before you commit.
Oxygen Equipment Billing Codes (HCPCS)
If you are reviewing supplier paperwork or checking a claim, these are the HCPCS codes suppliers use most often for oxygen equipment.
- E1390: stationary oxygen concentrator, the most common home setup
- E1392: portable oxygen concentrator
- E0424: stationary compressed gas oxygen system
- E0431: portable gaseous oxygen system, the portable tanks most suppliers’ pair with a home concentrator
- E0439: stationary liquid oxygen system
- E0443 and E0444: monthly portable oxygen contents, gaseous and liquid
You do not need to memorize these, but matching the code on your supplier’s paperwork to the equipment you received is a quick way to confirm you were billed correctly, especially since the rental fee is supposed to bundle supplies and maintenance.
Frequently Asked Questions
How much does Medicare pay for portable oxygen concentrators?
Medicare pays 80% of the Medicare-approved monthly rental amount for up to 36 months, and you pay the other 20% after the Part B deductible. The approved amount is a rental rate, not the retail price of the unit, and Medicare never pays the purchase price of a portable concentrator. If a supplier provides yours through Medicare, your share is a modest monthly coinsurance rather than the four-figure retail cost of buying one outright.
Do I own my oxygen concentrator after 5 years?
No. The supplier owns the equipment over the full five years, including the two years after rental payments stop. At the five-year mark you do not keep the old unit. Instead, you can choose to get new equipment from any Medicare-enrolled supplier, which essentially starts a new 36-month rental cycle.
Is Inogen covered by Medicare?
Inogen portable concentrators can be covered when a Medicare-enrolled supplier provides one as a rental under the standard oxygen rules. Buying a unit directly from the manufacturer or a retailer is not reimbursed, because Medicare rents oxygen equipment rather than purchasing it. If you want an Inogen or similar unit through Medicare, confirm the supplier will bill Medicare before you commit.
How do I qualify for oxygen through Medicare?
Your doctor documents a condition that requires supplemental oxygen and orders a blood oxygen test, either an arterial blood gas or a pulse oximetry reading, taken at rest, during activity, or during sleep. If your levels fall below Medicare’s qualifying range, your doctor writes the order, and you rent the equipment from a Medicare-enrolled supplier.
Does Medicaid cover oxygen equipment?
Yes, state Medicaid programs, including NC Medicaid, cover medically necessary oxygen equipment, and if you qualify for both Medicare and Medicaid, Medicaid can pick up some or all your Medicare cost share.
Get Help with Your Medicare Coverage
Oxygen is one of the longest financial commitments in durable medical equipment, because the 20% coinsurance repeats every month for three years. A Medigap plan can eliminate that coinsurance entirely, while Medicare Advantage plans each set their own copays, supplier networks, and prior authorization rules for oxygen. The licensed North Carolina agents at Mair Agency can compare your options side by side at no cost to you. Call today to talk through your coverage.